Hong Kong Stock Technology ETF Invesco (513980): Behind the cooling of the food delivery war, is the Hong Kong stock technology sector entering a rebalancing window?

Hong Kong Stock Technology ETF Invesco (513980) Worth Watching

On the afternoon of March 25, 2026, Meituan, Alibaba, JD.com, and other Hong Kong Stock Connect technology weight stocks collectively surged sharply. On the news front, the official website of the State Administration for Market Regulation reprinted an editorial from the Economic Daily titled “The Takeout War Should End,” signaling a loosening of valuation suppression factors for internet platforms.

Meanwhile, the Hong Kong Stock Technology ETF Invesco (513980), which tracks the Hong Kong Stock Connect Technology Index, is also gaining attention due to another logic — the ongoing escalation of Middle East geopolitical conflicts is prompting international funds to reassess Hong Kong’s role as a “safe haven” allocation.

Middle Eastern Funds Seek Safe Haven in Hong Kong, Valuation Advantages Highlighted

Recently, Middle East geopolitical conflicts have continued to escalate, with hostilities spilling over into the UAE, Qatar, and other countries. The Dubai real estate and construction index has fallen 29.95% since February 27, 2026. (Data source: Wind, as of 2026.03.23)

Concerns from international funds about the safety of these regions have directly increased attention on the Hong Kong market. According to Securities Times, financial institutions in Hong Kong have seen a significant increase in inquiries from Middle Eastern clients recently, involving Hong Kong stocks, bonds, and insurance products. (Source: Securities Times, published 2026.03.16)

Looking specifically at the escalation of conflict on March 16, despite net selling of 1.1 billion yuan by southbound funds, the Hang Seng Index and Hang Seng Tech Index still closed higher. Compared to the sharp fluctuations in Japanese and Korean markets, the relative resilience of Hong Kong stocks is noteworthy. (Data source: Wind)

Further evidence from Galaxy Securities shows that during the intensification of US-Iran conflicts from February 27 to March 13, the proportion of information technology sector holdings in Hong Kong stocks held by international intermediaries increased by 0.78%. (Source: Galaxy Securities, published 2026.03.18)

The Big Short Also Bullish on Hang Seng Tech

Michael Burry, the real-life figure behind the movie “The Big Short,” recently publicly stated:

“The plunge of the Hang Seng Tech Index is the only case in history driven purely by multiple compression (i.e., valuation and sentiment). In fact, even when the index is in a bear market, the revenues and profits of its constituent companies continue to grow steadily.”

The current P/E ratio of Hang Seng Tech is 20.81, down to the near 5-year percentile of 15.12%. (Data source: Wind, as of 2026.03.24)

Hong Kong Stocks vs Major Global Markets: Valuation Comparison

Data source: Wind, as of 2026.03.23

Low valuation alone cannot drive prices higher, but it can provide a higher margin of safety — buying at sufficiently low costs is itself a form of risk mitigation.

What is the difference between the Hang Seng Tech Index and the Hong Kong Stock Connect Technology Index?

This is a common question among investors.

The Hang Seng Tech Index, compiled by the Hong Kong Stock Exchange, includes the 30 largest technology stocks listed on HKEX, with a bias toward internet platform companies.

The Hong Kong Stock Connect Technology Index (CSI Hong Kong Stock Connect Technology Index) includes Chinese mainland tech companies listed in Hong Kong via the Stock Connect mechanism, covering internet platforms, new energy vehicle companies, chips, innovative drugs, and other segments, offering a more comprehensive and balanced allocation.

The Invesco Hong Kong Stock Technology ETF (513980), which tracks the Hong Kong Stock Connect Technology Index, is an efficient tool for capturing overall opportunities in Hong Kong tech stocks with one click.

Southbound funds net bought 60 billion yuan in March, and short positions have been closed, forming support

After adjustments, the stock structure of Hong Kong tech stocks is improving.

Southbound funds showed strong resilience during the March correction, with a net purchase of 60.1B yuan, becoming the dominant marginal pricing force under extreme volatility. (Data source: Wind, as of 2026.03.23)

Meanwhile, the previously accumulated short positions in Hong Kong stocks, amounting to about 2.44% of market cap, have reached a historical high. Recently, global market volatility has increased, reducing the risk-reward ratio of leveraged long-short trades. Some short sellers have closed positions, providing market support. After this position cleanup, foreign holdings may become healthier, reducing potential future selling pressure. (Source: Huatai Securities, published 2026.03.17)

Accelerating AI Commercialization, Fundamentals Supported

The AI industry is shifting from “capital expenditure anxiety” to “commercialization validation.” The successful commercialization of large models like ChatGPT has driven cloud service providers to raise prices, opening up imagination for AI application deployment and cloud business growth.

Alibaba’s financial report released on March 19, 2026, shows that Alibaba Cloud’s revenue grew 36% year-over-year, with AI-related product revenue achieving triple-digit growth for the tenth consecutive quarter. (Source: China Securities Journal, published 2026.03.19) Alibaba is an important weight stock in the Hong Kong Stock Connect Technology Index, and its AI commercialization success directly supports the index’s fundamentals.

Is Now a Good Time to Buy Hong Kong Tech Funds?

Objectively, the clarity of geopolitical conflicts, US dollar liquidity expectations, and domestic economic recovery still require time to observe. But after continuous adjustments, valuations of Hong Kong tech stocks have returned to historically low levels, with persistent southbound inflows forming a bottom support. The trend of AI commercialization provides a logical basis for medium- to long-term fundamentals.

From a risk-reward perspective, the Invesco Hong Kong Stock Technology ETF (513980) is an efficient allocation tool.

Product Details of Invesco Hong Kong Stock Technology ETF (513980)

**　　Invesco Hong Kong Stock Technology ETF (513980)**

? Trading method: On-exchange trading, like buying and selling stocks

? Tracking target: CSI Hong Kong Stock Connect Technology Index

? Fee rate: No sales service fee; subscription fee depends on holdings and distributor rules

**　　Invesco Hong Kong Stock Connect Technology Link Funds (016495 / 016496)**

? Trading method: Off-exchange subscription, minimum 1 yuan investment

? No redemption fee if held over 7 days

? Sales service fee: 0.40% per year

? Suitable for: Investors without stock accounts but wishing to allocate to Hong Kong tech; dollar-cost averaging users

The two linked funds (016495 for Class A, 016496 for Class C) meet different holding period needs — for long-term allocation, choose Class A for lower fees; for short-term holding or DCA, choose Class C to avoid redemption fees.

Hong Kong Stock Connect Technology Index Performance in the Past 5 Years

Data source: Wind, as of 2025.12.31

Risk Warning: The above content is for reference only and does not constitute investment advice. The Morningstar risk rating for Invesco Hong Kong Stock Technology ETF and linked funds is medium-high, suitable for active and aggressive investors. All investments carry risks; please invest cautiously. Past performance does not predict future results. Please read the fund contract, prospectus, and product summary carefully before investing.